Lab Radio

In today's episodes, we are going to explore some of the complexities of a Security vs. Utility token which are fresh on our minds after the recent SEC announcement about Ether and Bitcoin not being considered securities. William Hinman, the SEC's Director of Corporate Finance made the announcement: “Strictly speaking the token, the coin, whatever the digital information packet is being called all by itself, we don’t think is a security. Just as oranges in the Howey case were not securities. Essential to determining whether a security is being offered, however, is how it’s being sold and a reasonable expectation of purchasers. When someone buys a housing unit to live in it’s probably not a security but under certain circumstances, the same asset could be offered and sold in a way that could cause investors to have a reasonable expectation of profits based on the efforts of others. If the housing unit is offered with a management contract or other services where purchases are encouraged to invest rather than